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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-09585

 

img17696985_0.jpg 

ABIOMED, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

04-2743260

(State or other jurisdiction of incorporation or organization)

 

(IRS Employer Identification No.)

22 CHERRY HILL DRIVE

Danvers, Massachusetts 01923

(Address of principal executive offices, including zip code)

(978) 646-1400

(Registrant’s telephone number, including area code)

s

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which registered

Common Stock, $0.01 par value

ABMD

The NASDAQ Stock Market LLC

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of October 28, 2022, 45,091,184 shares of the registrant’s common stock, $.01 par value, were outstanding.

 

 

 


 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION:

Page

 

 

 

Item 1.

Condensed Consolidated Financial Statements (unaudited)

4

 

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2022 and March 31, 2022

4

 

 

 

 

Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2022 and 2021

5

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended September 30, 2022 and 2021

6

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended September 30, 2022 and 2021

7

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2022 and 2021

8

 

 

 

 

Notes to Condensed Consolidated Financial Statements (unaudited)

9

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

38

 

 

 

Item 4.

Controls and Procedures

38

 

 

 

PART II - OTHER INFORMATION:

 

 

 

 

Item 1.

Legal Proceedings

39

 

 

 

Item 1A.

Risk Factors

39

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

41

 

 

 

Item 3.

Defaults Upon Senior Securities

42

 

 

 

Item 4.

Mine Safety Disclosures

42

 

 

 

Item 5.

Other Information

42

 

 

 

Item 6.

Exhibits

43

 

 

 

Signatures

45

 

 

EXPLANATORY NOTES

Pending Trademarks and Registered Marks

Throughout this quarterly report on Form 10-Q (“this Report”), we refer to various trademarks, service marks and trade names that we use in our business. Abiomed, Impella, Impella 2.5, Impella 5.0, Impella LD, Impella CP, Impella RP, Impella 5.5, Impella Connect, and SmartAssist are registered trademarks of Abiomed, Inc., and are registered in the U.S. and certain foreign countries. Impella ECP, Impella BTR, STEMI DTU, Automated Impella Controller, Abiomed Breethe OXY-1 System and preCARDIA are pending trademarks of ABIOMED, Inc. Other trademarks and service marks appearing in this Report are the property of their respective holders.

Company References

Throughout this Report, unless the context otherwise requires, “ABIOMED, Inc.,” the “Company,” “we,” “us” and “our” refer to ABIOMED, Inc. and its consolidated subsidiaries.

2


 

Where You Can Find More Information

We make available, free of charge on our website located at www.abiomed.com, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, as soon as reasonably practicable after filing such reports with or furnishing such reports to the U.S. Securities and Exchange Commission (“SEC”). We also use our website for the distribution of Company information. The information we post on our website may be deemed to be material information. Accordingly, investors should monitor our website, in addition to following our press releases, SEC reports and other filings and public conference calls and webcasts. The contents of our website are not incorporated by reference into this Report.

3


 

PART I. FINANCIAL INFORMATION

ITEM 1: Condensed Consolidated Financial Statements

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

 

 

 

September 30, 2022

 

 

March 31, 2022

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

182,335

 

 

$

132,818

 

Short-term marketable securities

 

 

638,037

 

 

 

625,789

 

Accounts receivable, net

 

 

94,475

 

 

 

90,608

 

Inventories, net

 

 

102,237

 

 

 

93,981

 

Prepaid expenses and other current assets

 

 

45,714

 

 

 

33,277

 

Total current assets

 

 

1,062,798

 

 

 

976,473

 

Long-term marketable securities

 

 

116,871

 

 

 

220,089

 

Property and equipment, net

 

 

195,157

 

 

 

202,490

 

Goodwill

 

 

72,960

 

 

 

76,786

 

Other intangibles, net

 

 

36,833

 

 

 

39,518

 

Deferred tax assets

 

 

18,881

 

 

 

10,552

 

Other assets

 

 

193,044

 

 

 

147,485

 

Total assets

 

$

1,696,544

 

 

$

1,673,393

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

35,070

 

 

$

35,346

 

Accrued expenses

 

 

69,434

 

 

 

72,629

 

Deferred revenue

 

 

25,962

 

 

 

26,362

 

Other current liabilities

 

 

3,594

 

 

 

4,120

 

Total current liabilities

 

 

134,060

 

 

 

138,457

 

Other long-term liabilities

 

 

7,013

 

 

 

9,319

 

Contingent consideration

 

 

14,995

 

 

 

21,510

 

Deferred tax liabilities

 

 

689

 

 

 

781

 

Total liabilities

 

 

156,757

 

 

 

170,067

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Class B Preferred Stock, $.01 par value

 

 

 

 

 

 

1,000 shares authorized; issued and outstanding - none

 

 

 

 

 

 

Common stock, $.01 par value

 

 

452

 

 

 

455

 

100,000 shares authorized; 48,418 and 48,258 shares issued as of September 30, 2022 and March 31, 2022, respectively

 

 

 

 

 

 

45,172 and 45,545 shares outstanding as of September 30, 2022 and March 31, 2022, respectively

 

 

 

 

 

 

Additional paid in capital

 

 

904,755

 

 

 

870,074

 

Retained earnings

 

 

1,125,199

 

 

 

964,512

 

Treasury stock at cost - 3,246 and 2,713 shares as of September 30, 2022 and March 31, 2022, respectively

 

 

(443,974

)

 

 

(304,555

)

Accumulated other comprehensive loss

 

 

(46,645

)

 

 

(27,160

)

Total stockholders' equity

 

 

1,539,787

 

 

 

1,503,326

 

Total liabilities and stockholders' equity

 

$

1,696,544

 

 

$

1,673,393

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

4


 

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

265,921

 

 

$

248,142

 

 

$

543,070

 

 

$

500,727

 

Cost of revenue and operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

48,880

 

 

 

43,886

 

 

 

101,506

 

 

 

89,074

 

Research and development

 

 

42,089

 

 

 

41,041

 

 

 

82,566

 

 

 

78,749

 

Selling, general and administrative

 

 

116,958

 

 

 

102,779

 

 

 

234,954

 

 

 

206,263

 

Acquired in-process research and development

 

 

 

 

 

 

 

 

 

 

 

115,490

 

 

 

 

207,927

 

 

 

187,706

 

 

 

419,026

 

 

 

489,576

 

Income from operations

 

 

57,994

 

 

 

60,436

 

 

 

124,044

 

 

 

11,151

 

Interest and other income, net

 

 

80,709

 

 

 

6,835

 

 

 

84,481

 

 

 

46,770

 

Income before income taxes

 

 

138,703

 

 

 

67,271

 

 

 

208,525

 

 

 

57,921

 

Income tax provision

 

 

32,570

 

 

 

10,318

 

 

 

47,838

 

 

 

27,493

 

Net income

 

$

106,133

 

 

$

56,953

 

 

$

160,687

 

 

$

30,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - basic

 

$

2.34

 

 

$

1.25

 

 

$

3.53

 

 

$

0.67

 

Weighted average shares outstanding - basic

 

 

45,372

 

 

 

45,437

 

 

 

45,475

 

 

 

45,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - diluted

 

$

2.32

 

 

$

1.24

 

 

$

3.51

 

 

$

0.66

 

Weighted average shares outstanding - diluted

 

 

45,711

 

 

 

45,893

 

 

 

45,812

 

 

 

45,857

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

 

5


 

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income

 

$

106,133

 

 

$

56,953

 

 

$

160,687

 

 

$

30,428

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation losses

 

 

(8,029

)

 

 

(2,693

)

 

 

(16,758

)

 

 

(2,610

)

Unrealized gains (losses) on derivative instrument

 

 

78

 

 

 

545

 

 

 

(306

)

 

 

328

 

Net unrealized losses on marketable securities, net of tax

 

 

(423

)

 

 

(197

)

 

 

(2,421

)

 

 

(829

)

Other comprehensive loss

 

 

(8,374

)

 

 

(2,345

)

 

 

(19,485

)

 

 

(3,111

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

97,759

 

 

$

54,608

 

 

$

141,202

 

 

$

27,317

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

 

6


 

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(in thousands, except share data)

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Additional Paid

 

 

Retained

 

 

Accumulated Other

 

 

Total Stockholders'

 

 

 

Shares

 

 

Par value

 

 

Shares

 

 

Amount

 

 

in Capital

 

 

Earnings

 

 

Comprehensive Loss

 

 

Equity

 

Balance, March 31, 2022

 

 

45,545,438

 

 

$

455

 

 

 

2,713,125

 

 

$

(304,555

)

 

$

870,074

 

 

$

964,512

 

 

$

(27,160

)

 

$

1,503,326

 

Restricted stock units issued

 

 

105,701

 

 

 

2

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

1

 

Stock options exercised

 

 

18,136

 

 

 

1

 

 

 

 

 

 

 

 

 

1,530

 

 

 

 

 

 

 

 

 

1,531

 

Return of common stock to pay withholding taxes on restricted stock units

 

 

(42,046

)

 

 

(1

)

 

 

42,046

 

 

 

(10,949

)

 

 

 

 

 

 

 

 

 

 

 

(10,950

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,362

 

 

 

 

 

 

 

 

 

13,362

 

Stock repurchase program

 

 

(60,282

)

 

 

(1

)

 

 

60,282

 

 

 

(14,516

)

 

 

 

 

 

 

 

 

 

 

 

(14,517

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,111

)

 

 

(11,111

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54,554

 

 

 

 

 

 

54,554

 

Balance, June 30, 2022

 

 

45,566,947

 

 

$

456

 

 

 

2,815,453

 

 

$

(330,020

)

 

$

884,965

 

 

$

1,019,066

 

 

$

(38,271

)

 

$

1,536,196

 

Restricted stock units issued

 

 

16,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options exercised

 

 

3,337

 

 

 

 

 

 

 

 

 

 

 

 

468

 

 

 

 

 

 

 

 

 

468

 

Return of common stock to pay withholding taxes on restricted stock

 

 

(6,332

)

 

 

 

 

 

6,332

 

 

 

(1,852

)

 

 

 

 

 

 

 

 

 

 

 

(1,852

)

Stock issued under employee stock purchase plan

 

 

15,841

 

 

 

 

 

 

 

 

 

 

 

 

3,308

 

 

 

 

 

 

 

 

 

3,308

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,014

 

 

 

 

 

 

 

 

 

16,014

 

Stock repurchase program

 

 

(424,452

)

 

 

(4

)

 

 

424,452

 

 

 

(112,102

)

 

 

 

 

 

 

 

 

 

 

 

(112,106

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,374

)

 

 

(8,374

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

106,133

 

 

 

 

 

 

106,133

 

Balance, September 30, 2022

 

 

45,172,150

 

 

$

452

 

 

 

3,246,237

 

 

$

(443,974

)

 

$

904,755

 

 

$

1,125,199

 

 

$

(46,645

)

 

$

1,539,787

 

 

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Additional Paid

 

 

Retained

 

 

Accumulated Other

 

 

Total Stockholders'

 

 

 

Shares

 

 

Par value

 

 

Shares

 

 

Amount

 

 

in Capital

 

 

Earnings

 

 

Comprehensive Loss

 

 

Equity

 

Balance, March 31, 2021

 

 

45,270,948

 

 

$

453

 

 

 

2,658,454

 

 

$

(288,030

)

 

$

800,690

 

 

$

828,007

 

 

$

(11,445

)

 

$

1,329,675

 

Restricted stock units issued

 

 

85,284

 

 

 

1

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Stock options exercised

 

 

55,757

 

 

 

1

 

 

 

 

 

 

 

 

 

2,119